Move to boost trade relations; US whiskey industry gets a major breakthrough in India
February 15, 2025: India Cuts Bourbon Whiskey Tariffs by 66%, Easing US Trade Relations
In a major trade concession India has slashed import duties on American bourbon whiskey from 150% to 50%, a massive 66.6% reduction.
The move, notified on February 13 by the Department of Revenue, comes as part of India’s broader strategy to strengthen trade ties with the United States. The tariff reduction, however, is exclusive to bourbon whiskey, while all other imported alcoholic beverages will continue to attract a 100% customs duty.
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📌 Additional Taxation: Despite the tariff reduction, India has imposed a 50% agricultural cess under the Agricultural Infrastructure and Development Cess (AIDC), which will be levied over and above the import duty.
Why Is This a Big Deal?
🔹 Bourbon whiskey accounts for 25% of India’s total whiskey imports.
🔹 In 2023-24, India imported USD 2.5 million worth of bourbon whiskey, with the US contributing USD 0.75 million.
🔹 Other major exporters include the UAE (USD 0.54 million), Singapore (USD 0.28 million), and Italy (USD 0.23 million).
The tariff reduction significantly enhances market access for American bourbon brands in India, making premium US whiskey brands more competitive against European and domestic spirits.
Trump-Modi Trade Talks: Strengthening Economic Partnership
📢 US President Donald Trump, during his press briefing with PM Modi, praised the move, stating:
“Prime Minister Modi is a great leader. We’re going to make some wonderful trade deals for India and the US.”
Also Read: Trump Hails “Wonderful Trade Deals” As He Meets “Great Leader” PM Modi At White House
During a joint press conference, Trump also admitted that Modi is a tougher negotiator, saying:
“He is a much better negotiator than me. There is not even a contest.”
Also Read: “Not Even A Contest”: Trump Praises PM Modi’s Negotiation Skills Amid Trade Talks
Both leaders also pledged to double bilateral trade to USD 500 billion by 2030 and announced plans to negotiate a trade agreement to reduce duties and enhance market access.
What is Bourbon Whiskey?
🥃 Bourbon whiskey is a distinctive American whiskey made primarily from at least 51% corn and aged in charred oak barrels.
💡 Fun Fact: Just as Scotch whiskey can only be made in Scotland, bourbon can only be made in the United States.
📜 In 1964, the US Congress officially recognized bourbon as a “distinctive product of the United States.”
Popular Bourbon Brands in India:
✔️ Jack Daniel’s
✔️ Jim Beam
✔️ Woodford Reserve
✔️ Maker’s Mark
✔️ Gentleman Jack
✔️ Old Forester
The Bigger Picture: US-India Trade Relations
🔹 India’s move to cut whiskey tariffs signals a broader intent to ease trade restrictions and improve economic cooperation with the US.
🔹 In recent weeks, India has also reduced tariffs on several other US products as a goodwill gesture ahead of the Modi-Trump summit.
🔹 The tariff reduction is expected to boost US whiskey exports significantly, benefiting Kentucky and Tennessee-based bourbon distillers.
With New Delhi and Washington now eyeing deeper trade agreements, this move could pave the way for more tariff cuts and investment opportunities across multiple sectors.
📢 For American whiskey lovers in India, the price drop might just be the reason to raise a toast! 🥃
Tags: BourbonWhiskey, USIndiaTrade, ModiTrump, WhiskeyTariffs, TradeRelations, EconomicPartnership,